HL Deb 07 November 1989 vol 512 cc620-1

80 Clause 29 page, 44, line 15, leave out from 'was' to end of line 18 and insert 'by virtue of membership of a body recognised for the purposes of section 389(1)(a) of the Companies Act 1985 qualified for appointment as auditor of a company under that section immediately before 1st January 1990, and immediately before the commencement of section 23 above,'.

81 Page 44, line 24, leave out from 'before' to end of line 26 and insert '1st January 1990, and immediately before the commencement of section 23 above, was qualified for appointment as auditor of a company under section 389 of the Companies Act 1985 otherwise than by virtue of membership of a body recognised for the purposes of section 389(1)(a)—'.

82 Page 44, line 44, at end insert '(4A) A person who—

  1. (a) began before 1st January 1990 a course of study or practical training leading to a professional qualification in accountancy offered by a body established in the United Kingdom, and
  2. (b) obtained that qualification on or after that date and before 1st January 1996,
shall be treated as holding an appropriate qualification if the qualificaton is approved by the Secretary of State for the purposes of this subsection. (4B) Approval shall not be given unless the Secretary of State is satisfied that the body concerned has or, as the case may be, had at the relevant time adequate arrangements to ensure that the qualification is, or was, awarded only to persons educated and trained to a standard equivalent to that required in the case of a recognised professional qualification,'.

Lord Trefgarne

My Lords, I beg to move that the House do agree with the Commons in their Amendments Nos. 80 to 82 en bloc. These amendments concern the persons on whom the eighth directive allows us to confer approval to carry out audits. The directive, in Article 12, permits us to confirm the right to practise of those with existing rights, and this was provided for in Clause 29. However, we can only confer these so-called "grandfather rights" on persons who had the right to practise at the date at which the directive is to come into force; namely, 1st January 1990. Amendments Nos. 80 and 81 restrict the right to those persons.

The directive also allows us to approve persons who were in the course of studying for a qualification at the time the directive is to come into force. Amendment No. 82 now takes up this option in the directive. It follows the directive in limiting the concession to persons who obtain the qualification on or after 1st January 1990 and before 1st January 1996.

Moved, That the House do agree with the Commons in the said amendments. —(Lord Trefgarne.)

Lord Peston

My Lords, again I wish simply to clarify Amendment No. 82. As I understand it, essentially the amendment deals with people who are in process of becoming qualified. Am I then to understand that after 1996 we revert to what one might call the normal way of doing things; namely, fully qualified people from then on will be capable of meeting these conditions? To put the question differently: there must be a significance to January 1996 but the world goes on after 1996. So does what happens after 1996 just become a normal arrangement, as it were?

Lord Trefgarne

My Lords, with the permission of the House, the new arrangement appears to confirm that one cannot be a student for ever.

On Question, Motion agreed to.